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2018 Processing Stats

Updated: Dec 11, 2020

1. Check Image Clearing System (CICS)

Volume of Checks grew by 2.11% compared to the total count gathered in 2017. The growth was unexpected as volume of electronic fund transfers sent via the other electronic payment platform went up more than double after a year from launch as PESONet under the NRPS framework.

The increase can be due to the improving economy as evidenced by the overall GDP growth rate of 6.2% recorded in 2018. Though slowed down a bit by 0.5% compared to 2017, the step climb in the volume of Checks can likewise be attributed to the continued trust in the payment system and the next day funds availability as result of implementing the Check Image Clearing system (CICS) in the country. Following are the statistical graphs that depict volume and value of checks and other clearing items sent and processed by PCHC.

1.1 Clearing Volume

After experiencing decreases in 2015 and 2016, volume of transactions rose to 0.07% and 2.11% in 2017 and 2018, respectively.

As total annual volume increases and with 2 less clearing days compared to the number of clearing days in 2017, average daily volume in 2018 naturally was higher. For 2018, it rose to about 3%.

1.2 Clearing Values

Clearing values likewise went on an upward swing following a sudden turnaround in 2017. In 2018, accumulated clearing values registered 11.6% higher compared to 2017. This translates to about ₱4.3 Trillion. Not only did the clearing values surpassed the previous year, it even went beyond the 2014 level by registering a whooping ₱8.11 Trillion Pesos by the end of 2018. Proof that economic activity is indeed active and growing.

1.3 Dishonored/Returned Items

From 11,558 items, the daily average volume of returns in the years 2014 and 2015 went down to 10,399 items in 2016 and to 10,419 in 2017. The downtrend can simply be attributed to the declining volume that was experienced starting 2015 and felt most in 2016. With the volume again slightly rising beginning 2017, count of dishonored items went up in parallel. After a year of CICS, it was expected that count of dishonored items would go down by at least 10% as customers experience in handling their demand deposit accounts would change. However, this did not happen as volume of dishonored items in 2018 grew to almost a thousand items. It could only be surmised that the additional 30 minutes provided in the Morning Returns cut-off time gave participant banks more time to return dishonored items.

1.4 Volume and Value of Returns vs Previous Day Window

Expectedly, percentage of dishonored items versus previous day’s regular clearing items increased. From 1.50% in 2017, volume rose to 1.61% in 2018. Over the last 5 years, the percentage of returns has an average of 1.58%, with the highest percentage recorded in 2015 at 1.67%. It was in 2017 that the percentage of return registered the lowest.

1.5 Top 10 Reasons for Dishonor

For the members’ appreciation, indicated in the chart below are the top 10 reasons for dishonor based on Morning Returns data.

Funding related concerns are still the top causes why Checks are being dishonored. On the other hand, technical reasons seem to be on the decline after issuing an operating memo requiring Presenting Banks to carefully examine technicalities before acceptance. It is expected that dishonor due to technicalities will be reduced significantly in the very near future.

1.6 Breakdown of Clearing Volume and Value

As depicted in the following chart, more than half of the clearing volume (52% or about 92 Million items) were presented in the National Capital Region (NCR) while 46% or 82 Million items are those items presented in 68 clearing regions located outside of NCR. The remaining 2% of the total volume represents volume of Morning Returns (about 2% or roughly 2.8 Million Items).

Aggregate values on the other hand is on a similar trend. Metro Manila has still the lion share as value of items presented in Metro Manila accounts for 74% of the nationwide total check clearing values. That’s about an accumulated or aggregated ₱30.5 Trillion total in 2018. The rest of the regions accounted ₱10.6 Trillion or about 25% while the remaining 1% or ₱300 Billion is the value of the Morning Returns.

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2. The Philippine EFT System Operations Network (PESONet)

The year 2018 marked an important milestone for PESONet, PCHC’s Electronic Fund Transfer solution that supports the PESONet ACH of BSP’s National Retail Payments System initiative that was launched in November 8, 2017. By the end of year, PESONet volume grew more than 50% compared to the total number of items counted the end of previous year.

2.1 Transaction Volume and Value

After the launching of EPCS+ as PESONet under the BSP’s NRPS framework, volume of

electronic fund transfer (EFT) EFT transactions more than doubled. From an average increase

rate of 23% or around 553,000 new transactions annually from 2013 to 2017, PESONet volume

grew significantly to 196% or about 4,000,000 from 2014 to 2018. On year on year between

2017 and 2018, PESONet posted its highest volume increase at 54% or about 2.1 Million more

compared to the figures recorded over that of last year.

Correspondingly, values of PESONet transactions in 2018 rose to 36% compared to the

previous year. From ₱592.7 Billion, transaction value registered an upward swing to ₱805.7

Billion in 2018, the highest ever recorded. The average increase rate in terms of Peso values

similarly increase of 14% or around ₱81 Billion annually.

3. Philippine Domestic Dollar Transfer System (PDDTS)

Economic upheaval in the U.S. as well as in the neighboring Asian Countries partly affected the remittances considering that a substantial number of Filipinos work overseas. Such deafening news lead to disruptions eventually influencing frequency of dollar remittances. PDDTS Transaction volume which steadily was on an uphill in 2015 until 2016, slowed down in 2017 and eventually dived in 2018 as volume went down by 3.9% or almost 5,000 transactions.

4. Payment Application Secure Version 5 (PAS5)

Monthly Transaction Volume

PAS5 transaction volumes in January, February, April, May, June, July, August, September, October and November 2018 were definitely higher compared wth the same months in previous years (2016 and 2017). Volume as shown in the chart below started lower but recovered and improved in the middle of the year until the later part of the year and usually dipped at yearend. Total Transaction Volume in 2018 reached 1.12 Million. This is 6.5% higher than the volume in 2017 which registered 1.05 Million. The 68,000 increase in transaction count although less significant, is higher compared to the increase of transactions experienced in 2017, which was barely about 55,000 transactions.

Monthly Transaction Value

Notably on a month to month comparison of monthly transaction values, same started low but recovered and improved during the middle until the latter part of the year. Following the same pattern/trend shown in the volume count, transaction values went down at yearend.

Overall, Transaction Value registered an increase of ₱121 Billion in 2018 compared to ₱68 Billion in 2017. The 2018 total transaction values registered 27% increase as compared to only 18% in 2017. But unlike the transaction volume, the monthly transaction values in 2018 registered highest compared to the previous years (2016 and 2017). For 2018, October posted the highest at ₱53.7 Billion followed by ₱50.4 Billion in May.

Transaction Volume Distribution

As expected, the top three (3) performers in terms of transaction count are MICP (437,813) followed by NAIA (212,707), and Port of Manila (198,273). Lagging behind is Port of Davao (86,275), followed by Port of Cebu (58,720). The aggregate transaction count from these top five (5) performers accounted for 89% or a total of 993,788 transactions; with MICP contributing 44% (of 993,788), NAIA at 21%, Port of Manila, 20%, Port of Davao at 9% and Port of Cebu at 6%. The rest of the ports accounted for the remaining 11%.

Transaction Value Distribution

MICP similarly contributed a significant share at 29% (₱161.93 Billion) of the total value (₱564.60 Billion) distribution. Trailing behind is Port of Batangas with 16% (₱88.76 Billion), followed by Port of Manila at 11% (₱63.02 Billion). Far behind are Sub-Port of Bauan with 8% (₱46.33 Billion) and NAIA at 7% (₱37.31 Billion). The rest of the ports shared the remaining 30% with a total value of ₱167.25 Billion.

Depicted below is the distribution of transaction value of the top five (5) ports while the rest of the ports grouped as Other Ports:

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